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CSX Corp (CSX) May Beat on Q4 Earnings: Stock to Gain?
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CSX Corporation (CSX - Free Report) is scheduled to report fourth-quarter 2016 results on Jan 17, after market close. The company reported better-than-expected earnings in the third quarter of 2016. In fact, the carrier outpaced earnings estimates of the last four quarters with an average earnings beat of 4.46%.
Earnings Whispers
Our proven model shows that CSX Corp. is likely to beat earnings estimates this quarterbecause it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for CSX Corp. is +6.25%. This is because the Most Accurate estimate stands at 51 cents while the Zacks Consensus Estimate is pegged at 48 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: The carrier carries a Zacks Rank #3 (Hold). Pleasenote that stocks with Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Please note, we caution against Sell-rated stocks (Zacks Rank #4 and 5) going into an earnings announcement, especially if the company has seen negative estimate revisions.
CSX Corp.’s cost saving and expense management measures are impressive. The company gave a bullish forecast for the to-be-reported quarter. It now expects fourth-quarter earnings to remain unchanged or improve slightly from the year-ago quarter (the earlier expectation was for earnings to be flat or slightly lower than the prior-year quarter). The company also expects an improvement in coal volumes.
However, adverse foreign exchange movements might impact the company’s results. Additionally, weather conditions remain a challenge and can have an impact on the company’s top line. CSX Corp. also faces tough competition from peers like Union Pacific Corp. (UNP - Free Report) and Norfolk Southern Corp. (NSC - Free Report) .
We note that the company’s stock has outperformed the broader Zacks categorized Transportation-Rail industry over the past three months. Shares of the company rose 22.12%, while the industry gained 7.22% over the same period.
A Stock That Warrants a Look
CSX Corp. is not the only company looking up this time around. Here is a stock from the transportation sector that you may want to consider, as our model shows that it has the right combination for an earnings beat this quarter:
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CSX Corp (CSX) May Beat on Q4 Earnings: Stock to Gain?
CSX Corporation (CSX - Free Report) is scheduled to report fourth-quarter 2016 results on Jan 17, after market close. The company reported better-than-expected earnings in the third quarter of 2016. In fact, the carrier outpaced earnings estimates of the last four quarters with an average earnings beat of 4.46%.
Earnings Whispers
Our proven model shows that CSX Corp. is likely to beat earnings estimates this quarterbecause it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for CSX Corp. is +6.25%. This is because the Most Accurate estimate stands at 51 cents while the Zacks Consensus Estimate is pegged at 48 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: The carrier carries a Zacks Rank #3 (Hold). Pleasenote that stocks with Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Please note, we caution against Sell-rated stocks (Zacks Rank #4 and 5) going into an earnings announcement, especially if the company has seen negative estimate revisions.
CSX Corporation Price and EPS Surprise
CSX Corporation Price and EPS Surprise | CSX Corporation Quote
Factors at Play
CSX Corp.’s cost saving and expense management measures are impressive. The company gave a bullish forecast for the to-be-reported quarter. It now expects fourth-quarter earnings to remain unchanged or improve slightly from the year-ago quarter (the earlier expectation was for earnings to be flat or slightly lower than the prior-year quarter). The company also expects an improvement in coal volumes.
However, adverse foreign exchange movements might impact the company’s results. Additionally, weather conditions remain a challenge and can have an impact on the company’s top line. CSX Corp. also faces tough competition from peers like Union Pacific Corp. (UNP - Free Report) and Norfolk Southern Corp. (NSC - Free Report) .
We note that the company’s stock has outperformed the broader Zacks categorized Transportation-Rail industry over the past three months. Shares of the company rose 22.12%, while the industry gained 7.22% over the same period.
A Stock That Warrants a Look
CSX Corp. is not the only company looking up this time around. Here is a stock from the transportation sector that you may want to consider, as our model shows that it has the right combination for an earnings beat this quarter:
JetBlue Airways Corp. (JBLU - Free Report) , which is expected to report fourth-quarter results on Jan 26 has a Zacks Rank #3 and an Earnings ESP of +4.26%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>